Death and taxes are the only two certainties in life. But there’s another certainty this year that Manitobans will have to live with.

The Selinger government will almost certainly raise taxes this year when it brings down its 2013 budget in the coming weeks. The only question now is, which taxes will they raise?

Manitoba New Democrats have found themselves in a financial pickle of late. After years of expanding the size of government, adding hundreds of new civil servant jobs and living way beyond its means, the Selinger government is scrambling just to keep its financial head above water.

It’s not a question anymore of trying to figure out how to balance the books over the next couple of years. The NDP gave up on that notion a few years ago when then-finance minister Rosann Wowchuk declared that “it’s OK to run a deficit.”

Now, government’s structural deficit is so entrenched, the most Premier Greg Selinger is willing to do is contain the size of the annual shortfall. And in order to do that, he will raise taxes every year instead of using austerity measures to control spending.

Last year the NDP brought in the largest overall tax increase in 25 years in Manitoba.

So which taxes will they raise this year?

Here’s a tax primer and some prognostications on what you can expect in the 2013 provincial budget.

Individual Income Taxes

This is by far the most lucrative form of taxation for the government. The province hasn’t raised income tax rates for some time. They did trim rates slightly in 2007 and promised to chip away at them further through a five-year plan. However, they reneged on that in the 2009 budget. The result is, taxpayers have been paying steadily more since then because the province doesn’t index its tax brackets, which have remained stable since 2009. The only adjustment it has made since then are very small increases to the basic personal exemption — the amount you can earn before paying taxes. Expect bracket creep to remain in place this year with a small increase to the personal exemption.

Retail Sales Tax

Expanding the PST has been the Selinger government’s favourite way of picking taxpayers’ pockets over the past decade. The NDP have expanded the PST three times to include services like accountants and lawyers to plumbers and electricians. Last year the NDP expanded it to include a wide range of insurance premiums and salon services like women’s haircuts, pedicures and manicures. Look for another expansion in 2013. This one is too lucrative for the NDP to pass up.

Fuel Tax

The NDP raised fuel taxes by 3.5-cents a litre last year. They said it was necessary to pay for expensive infrastructure upgrades across the province. Look for another increase in this tax in 2013.

Land Transfer Tax

This tax has been one of the fastest growing revenue sources for government over the past 10 years.

First introduced by the NDP in 1987 as a small administrative fee for land title costs, it now raises over $67 million a year. The 2% rate on homes worth more than $200,000 has remained stable since 2004, but the tax has been a windfall for government because housing prices have soared.

I could see government making a small adjustment to this tax to fatten up what’s been a lucrative cash cow for the public treasury.

Tobacco Tax

Tobacco taxes in Manitoba now generate more money for government than fuel taxes. That’s because government has been jacking up taxes on smokes almost every budget. The tax now stands at 25 cents per cigarette.

With little public sympathy for the financial hardships of smokers, expect this tax to go up another penny or two in 2013.

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Selinger sure to raise taxes

Death and taxes are the only two certainties in life. But there’s another certainty this year that Manitobans will have to live with.

The Selinger government will almost certainly raise taxes this year when it brings down its 2013 budget in the coming weeks. The only question now is, which taxes will they raise?

Manitoba New Democrats have found themselves in a financial pickle of late. After years of expanding the size of government, adding hundreds of new civil servant jobs and living way beyond its means, the Selinger government is scrambling just to keep its financial head above water.

It’s not a question anymore of trying to figure out how to balance the books over the next couple of years. The NDP gave up on that notion a few years ago when then-finance minister Rosann Wowchuk declared that “it’s OK to run a deficit.”

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